Part ii. The economy of the usa

GETTING STARTED

1. Discuss the following in pairs or small groups:

ü How does the geographical position of the USA influence economy?

ü Is the USA rich in natural resources?

ü What can you say about the US economy today?

USEFUL VOCABULARY

consumer (n) - потребитель

consumption (n) – потребление

copper (n) – медь

costs (n) – затраты, издержки

crude oil – неочищенная нефть

depreciate (v) – обесцениваться, падать в цене

discourage (v) – препятствовать, мешать

downturn (n) – уменьшение, спад

enterprise (n) – предпринимательство, промышленное предприятие, предприимчивость

entrepreneurship (n) – предпринимательство

erode (v) – разъедать, разрушать

extraction (n) – добывание, извлечение

grain (n) – зерно, хлебные злаки

layoff (n) – приостановка или прекращение производства; увольнение из-за отсутствия работы; приостановка производства

lead (n) – свинец

leasing service – лизинговая услуга

lumber (n) – (Am.) пиломатериалы, бревна

maize (n) – кукуруза, маис

mining (n) – горное дело

overlap (v) – частично совпадать

overtake (v) – догонять, перегонять

petroleum (n) – нефть, бензин

pork (n) – свинина

poultry (n) – домашняя птица

profit (n) – польза, выгода; прибыль, доход

rapid (adj) – быстрый, скорый

soybeans (n) – соевые бобы

stagnation (n) – застой, застойность

threefold (adj) – утроенный, тройной

timber (n) – лесоматериалы, строевой лес

warehousing (n) – хранение, размещение на складе

wheat (n) – пшеница

READING

1. Read the text and focus on the following points:

ü the way the US economy works and the role and functions of the government;

ü the major sectors of the economy;

ü the reasons why the country is one of the most significant nations in the world.

The American economy is a dynamic, free-market system constantly evolving out of the choice and decisions made by millions of citizens who play multiple, often overlapping roles as consumers, producers, investors and voters. The country has the world’s largest and most technologically powerful economy in the world. Its GDP is $14.58 trillion (2008), two times the size of the next largest economy, Japan.

Despite the country’s position as the most powerful economy, it now faces many serious economic problems. Some of these are short-term, but some of them reflect an underlying weakness. Long-term problems include inadequate investment in economic infrastructure, rapidly rising medical and pension costs of an ageing population, sizable trade and budget deficits, and stagnation of family income in the lower economic groups. Besides, the global economic downturn, the sub-prime mortgage crisis, investment bank failures, falling home prices, and tight credit pushed the United States into a recession. To help to stabilize financial markets, the US Congress established a $700 billion Troubled Asset Relief Program (TARP) in October 2008. In January 2009 the US Congress passed and President Barack Obama signed a bill providing an additional $787 billion fiscal stimulus – two thirds on additional spending and one third on tax cuts – to create jobs and to help the economy recover.

The American economy is better described as a ‘mixed’ economy, with government playing an important role along with private enterprise. The American free enterprise system emphasizes private ownership. Private businesses produce most goods and services, and almost two thirds of the nation’s total economic output goes to individuals for personal use (the remaining one third is bought by government and business). The consumer role is so great, in fact, that the nation is sometimes characterized as having a ‘consumer economy’.

Producers decide which goods and services to make and sell, and how much to ask for those products. At the same time, consumers decide what they will purchase and how much money they are willing to pay for different goods and services. The interaction between competing producers, who attempt to make the highest possible profit, and consumers, who try to pay as little as possible to acquire what they want, ultimately determines the price of goods and services.

In a market economy, government plays a limited role in economic decision making. However, the United States does not have a pure market economy, and the government plays an important role in the national economy. It provides services and goods that the market cannot provide effectively, such as national defence, assistance programs for low-income families, and interstate highways and airports. The government also provides incentives to encourage the production and consumption of certain types of products, and discourage the production and consumption of others; sets general guidelines for doing business and makes policy decisions that affect the economy as a whole; establishes safety guidelines that regulate consumer products, working conditions, and environmental protection.